My 3 best investment ideas from January 2020 and what I’d do about them now

first_img Image source: Getty Images. Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! My 3 best investment ideas from January 2020 and what I’d do about them now To know where we are going, it’s often instructive to look at where we are coming from. And this applies to investments as well. In this spirit, I took a look back at the stock ideas I had this month one year ago. Here are three of my best:#1. Fevertree Drinks: US market gainsAIM-listed Fevertree Drinks (LSE: FEVR) was one stock I was gung-ho about. At the time the tonic-water manufacturer’s share price had crashed by a resounding 27% following a weak trading update. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…My big argument in its support was based on its healthy growth in geographies outside of the UK. This trend was visible even up to June 2020. It reported declining sales in the UK and Europe but a huge 39% increase in its US sales.That said, its total revenue has been impacted, as has been its earnings. But at a time of high investor confidence, money is getting funneled into stocks even if they are weak. They just need to show potential. It’s no coincidence then, that from the date the article was published to now, the FEVR share price has risen over 60%. I’d be a bit more cautious to buy it today, however, going by the continued lockdown and its high earnings ratio of 56 times.#2. Anglo American: metal price boom The FTSE 100 miner Anglo American (LSE: AAL) was another stock I liked year ago. It had just bid for the beleaguered Sirius Minerals, which was subsequently de-listed. At the time of writing the article I saw its Sirius Minerals bid as a strategic one towards cleaner energy.One-fourth of AAL’s revenues are derived from coal at present. Acquisition of the polyhalite miner would, in that context, be a step in the right direction. While 2020 hasn’t been one of much progress in strategic goals, investors are clearly bullish on the stock. Industrial metals’ price boom has been a boon for miners. As a result, AAL’s share price has seen a 28% increase since even the pre-crash levels of January 2020. It’s at multi-year highs now. But I think it’s still a good buy because metal demand can increase further on US and Chinese infrastructure spends.#3. Tullow oil: sinking stockWhile these are two examples of stocks that would’ve earned me good returns, there’s one which wouldn’t (and I’m glad I didn’t buy it). As much as buying winning stocks, ensuring robust gains also means letting go of what may look like good opportunities at the time but are quite risky. I’m referring to the FTSE 250 oil and gas producer Tullow Oil, whose share price had fallen 16% at the time of writing last year. It was in a challenging place even then, and after the 40% in its share price since the time I wrote about it. It continues to be weak, making it a good idea for me to steer clear from the share for now. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Fevertree Drinks. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! Manika Premsingh | Monday, 25th January, 2021 | More on: AAL FEVR TLW Simply click below to discover how you can take advantage of this. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares See all posts by Manika Premsinghlast_img

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